EURUSD could struggle to see more gains in the near term, with downside risks persisting at this point
The dollar derived some support from a hawkish tone by Powell late Tuesday and looks steady on the first trading day of December following the recent decline. As such, the EURUSD pair encountered resistance represented by the descending 20-DMA around 1.1380 on Tuesday and has been struggling to regain the upside bias since then. The immediate barrier now arrives at 1.1360. A decisive break above this hurdle would pave the way to further recovery in the short term. The common currency was last seen changing hands around 1.1320, down 0.11% on the day. On the four-hour charts, the pair is now stuck between the 100- and 20-SMAs while the RSI is pointing slightly lower in neutral territory, suggesting EURUSD could struggle to see more gains in the near term, with downside risks persisting at this point.
The cable keeps declining gradually, staying below the descending 20-DMA for a month already. The pair dipped to fresh 2021 lows below 1.3200 on Tuesday but erased most of the losses by the end of the day. Today, the pound turned slightly positive, however, still lacks the momentum to get back above the 1.3400 handle, while the immediate resistance arrives at 1.3350. GBPUSD now needs to hold above the 1.3275 zone in order to avoid fresh losses. On the hourly timeframes, the prices struggle to hold above the 100-SMA, suggesting the pair could stay on the defensive in the near term despite a mild bullish bias on the intraday charts. In a wider picture, downside risks persist as well, especially after the cable derailed the 100-week SMA, currently at 1.3220.
USDJPY dipped to October 11 lows around 112.50 before bouncing back above the 113.00 figure on Tuesday. Today, the pair regained the upside bias and was last seen changing hands around 113.40, still shy of this week’s highs seen just below the 114.00 figure that represents the immediate upside target for dollar bulls at this point. Should this hurdle give up, the pair would regain the 114.30 intermediate resistance. However, it looks like the upside potential would be limited so far, as risk aversion in the global financial markets may reemerge at any point and push the safe-haven Japanese yen higher again. On the weekly charts, the technical picture looks neutral as long as the prices stay above the 20-week SMA. currently at 111.60.
Following three days of losses, gold prices attempt to bounce from one-month lows seen around $1,770 on Tuesday. The XAUUSD pair regained a bullish bias on the first day of December, but the recovery momentum looks too modest to bet on more significant gains in the short term. The non-yielding precious metal briefly exceeded the $1,800 figure on Tuesday but failed to preserve gains amid the emergence of fresh buying pressure surrounding the greenback. Should dollar demand pick up again anytime soon, the bullion may attract fresh sellers and target November lows around $1,758, followed by the $1,750 zone. On the upside, the immediate resistance is now represented by the $1,791 figure where the 100- and 200-DMAs converge. XAUUSD could depreciate further in the near term amid the recent repeated failures to hold above the key simple moving averages on the daily charts. To shrug off the current bearishness, the yellow metal needs to settle above the 20-DMA, currently at $1,821.
The Kiwi bounced from one-year lows seen around 0.6770 on Tuesday. The pair regained the 0.6800 figure and climbed to nearly one-week highs around 0.6860 earlier today and was last seen clinging to the upper end of the range despite the dollar having steadied across the market. Should NZDUSD retain a bullish bias in the near term, the pair may get back above the 0.6875 intermediate barrier and target the 0.6900 barrier eventually. On the hourly charts, the technical picture looks fairly upbeat, with the RSI pointing north in the neutral territory while the prices have settled above the key moving averages. On the downside, the immediate support is represented by the 0.6815 zone.